Posted by JHyre in Ohio on February 16, 2002 at 06:18:01:
There are a couple of ways to approach this issue…I’d decuct all of the interest, capitalize (add to the basis of the property) your rehab for both sides, and depreciate the side that is rented. If I intended to sell this property, I would not depreciate the lived-in side, to preserve it’s “residential” gain exclusion. If I intended to hold, I’d rent the lived-in portion to myself and take the depreciation deductions on the entire property.
Posted by w sievert on February 13, 2002 at 24:46:43:
I bought a duplex in october 2000. For all of 2001, one unit has served as my primary residence. The other unit was rented for 6 months. During this time, I have made costly repairs and upgrades (in addition to paying mortgage loan interest) on this rental property. My question is…Can I deduct all of these costs or is it limited due to the fact that I lived in one apartment?